Statement of House Judiciary Committee Chairman Bob Goodlatte Markup of H.R. 1755, to make certain improvements in the congressional charter of the Disabled American Veterans

Chairman Goodlatte: Since 1920, Disabled American Veterans has been serving American veterans who were wounded in the line of duty.  It provides free assistance to veterans and their families in obtaining federal benefits and services earned through military service.  It represents the interests of disabled veterans, their families, their widowed spouses and their orphans before the federal, state and local governments.  And it provides a structure through which disabled veterans can express their compassion for their fellow veterans through a variety of volunteer programs. The organization received a federal charter in 1932.  DAV is seeking enactment of H.R. 1755, which will facilitate DAV in its fund-raising efforts.  As the organization explains:

For decades, DAV has been exempt from federal taxation under Section 501(c)(4) of the Internal Revenue Code . . . .  Donations to most 501(c)(4) organizations are not deductible for income or estate tax purposes.  DAV is a rare exception, as it qualifies to receive deductible contributions as a “war veterans” organization.

Many donors, even sophisticated donors, believe incorrectly that charitable deduction are available only for gifts made to a 501(c)(3) organization, more commonly known as a “public charity.”  We believe that this misconception has been limiting DAV’s opportunities to gain corporate support and major gifts, including bequests.

There is no doubt that DAV’s activities of service to wounded and disabled veterans would enable it to qualify as a public charity, exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.  To achieve that designation, the organization needs to make application to the Internal Revenue Service.  The application requires that certain language be included in the “organizing document,” which in our case is the federal charter.

[H.R. 1755 makes] explicit DAV’s exclusively charitable purpose, explain[s] the educational component of its mission and mandate[s] the assignment of its assets to the Department of Veterans Affairs in the event of dissolution.  Inclusion of these provisions in the charter will simplify greatly our conversion to (c)(3) status.

We can help DAV carry out its vital mission through this legislation.  I commend Representative Miller for introducing the bill and urge my colleagues to support it. More on today’s markup can be found here.